Apple preparing an upgraded $99 Apple TV

A new report published by Engadget claims the new version of Apple TV will be a $99 device that fixes several of the major complaints related to the current offering.

The current Apple TV, which has not received much appreciation from the consumer market, uses a scaled down version of Apple's OS X.  Apple realized that the OS was a bit disappointing, and will instead use the latest iPhone OS to offer a faster, more consolidated offering.

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Instead of keeping content stored locally, Apple will also reportedly embrace the cloud, Engadget reports.  A "Time Capsule" feature will allow owners to store content locally, though Apple is prepared to focus more on streaming.

The new Apple TV will also use the same A4 CPU, 16GB flash storage, stream in 1080p HD, and will have just a power socket and video out port.

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It's a shame Apple won't add additional ports for USB and HDMI, but this appears to be Apple's attempt to force customers into the cloud.

I understand why Apple wants to give the TV market another shot -- it's a booming industry that blends hardware and software in the living room -- but the entrance of numerous set-top boxes and Google TV means Apple will have a tough time trying to claw back into the market.  The recent collaboration between Google, Intel, Logitech and Sony has gained a lot of mainstream attention -- even though the new Apple TV has reportedly been in development a longer time.

We published an article last August indicating that Apple could release a new TV product, but another attempt at Apple TV wasn't expected.

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